After losing an oilfield to China, and Iran trimming the promised stake in a gas field by one-third, India would review its energy cooperation with the Persian Gulf nation when Petroleum Minister Murli Deora meets its leaders in Beijing next week.
Iran chose China over India's ONGC-Hinduja Group joint venture for award of the giant South Azadegan oilfield, and has trimmed the combine's promised 60 per cent stake in Phase-12 of the South Pars gas field in the Persian Gulf.
Deora, who will lead the Indian delegation to the Shanghai Cooperation Organisation (SCO) meeting in Beijing on October 13, is likely to meet the Iranian First Vice President Mohammad Reza Rahimi on the sidelines of the conference.
"There is no set agenda but in my meeting I will discuss all impending issues," the minister said.
Iran had last year identified South Azadegan oilfield and South Pars Phase-12 (SP-12) gas field for the state-owned ONGC and Hinduja combine, but in the 21 months, since, virtually no progress has been made. Iran has put the onus on India's side.
While Tehran believes New Delhi may be dithering on energy ties under US pressure, Deora said India placed "immense importance to ties with Iran and (will) continue to pursue energy projects."
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While a firm agreement with Sonangol has not been signed yet, it has already signed for 10 per cent stake in SP-12 with Venezuela's PdVSA and was also courting Austria's OMV, highly placed sources said.
Last week, Iran signed a deal to give the 260,000 barrels per day South Azadegan oilfield along the Iraqi border to China's CNPC. It has now given one-third out of the promised 60 per cent stake in $7.5 billion SP-12 to Angola's state- owned oil firm Sonangol.
"We are very seriously engaged with Iran...Be it import of gas through a pipeline or oil and gas fields for ONGC. We will continue to pursue projects in Iran and back our PSUs in their bid to get oil and gas fields," Deora said. "I am very hopeful that Iran will consider ONGC for grant of at least one big oil and gas field."
He is also keen on a meeting with the new Iranian Oil Minister Masoud Mirkazemi.
ONGC Chairman and Managing Director R S Sharma said a few weeks back he had extended an invitation to National Iranian Oil Co (NIOC) Managing Director Seifollah Jashnsaz to discuss SP-12 and other projects but since the suggested dates did not suit him new dates are under discussion.
ONGC has already committed $5 billion in developing the Farsi gas field in the same Persian Gulf.
Iran had last year agreed to give the joint venture of ONGC Videsh — the overseas arm of state-run Oil and Natural Gas Corp — and Hinduja Group firm Ashok Leyland Project Services a 60 per cent stake in SP-12 gas field.
But the Islamic republic has signed heads of agreements for 20 per cent of the stake meant for ONGC-Hinduja in the $7.5 billion gas field with Angola's Sonangol.
Sharma said irrespective of setbacks ONGC would continue to pursue opportunities in Iran. "We should look at ways and means to pursue opportunities in Iran."
Besides South Azadegan, Iran has also awarded the $4.7 billion Phase-11 of South Pars field to China National Petroleum Corp (CNPC).
SP-12 has a production target of 3 billion cubic feet per day — all or most of which may be used to supply planned liquefaction facilities for LNG exports. It will also produce 120,000 barrels per day of condensate.
The two trains will produce almost 8.5 million tons per annum of LNG from gas piped in from SP-12.
Sources said ONGC-Hinduja wanted to export the LNG produced to India.
State-owned Iranian company Petropars-operated SP-12 project has been modified to take in a fourth production platform and increase the number of wells being drilled.
The project is planned to produce 3 billion cubic feet of gas per day for probable liquefaction at the proposed Iran LNG plant.
The increase in the number of production platforms does not raise the overall output, but follows shifts in locations. Two of the four platforms will produce at a rate of one billion cubic feet per day each, while the remaining two will have a capacity of 500 million cubic feet per day.
Six new wells are planned, raising the total to 42.